Bolivia Plans Cryptocurrency for Energy Imports Due to U.S. Dollar Scarcity: Source

Bolivia's state-owned energy company, YPFB, will start utilizing cryptocurrencies to pay for fuel imports as the nation faces a critical shortage of U.S. dollars and dwindling natural gas production.

This choice comes after the government authorized the use of digital assets for purchasing energy supplies. Bolivia is trying to sustain fuel subsidies while its foreign currency reserves are decreasing, as reported by Reuters.

The measure is taken as long queues at gas stations and scattered protests emphasize the escalating fuel crisis.

"From now on, these (cryptocurrency) transactions will be performed," a YPFB representative told Reuters, underlining the necessity of obtaining energy resources despite financial limitations.

Bolivia’s diminishing energy supply

Formerly a net energy exporter, Bolivia has experienced a decline in its gas production due to the absence of major new discoveries, compelling it to depend on imports.

Recently, Santa Cruz, Bolivia, encountered a severe diesel shortage, resulting in blockades and threats of strikes. Farmers in Concepción and Yapacaní protested by obstructing highways, disrupting trade, and putting their summer harvest at risk.

Public transport functioned at reduced capacity, and transport operators gave the government a 48-hour deadline before initiating an indefinite strike.

Bolivia's Ministry of Hydrocarbons and Energy revealed a plan to expand the national electricity system by 5,290 MW from 2026 to 2050, focusing on renewable energy sources like wind, solar, hydroelectric, and geothermal power.

This endeavor aims to strengthen energy security, sustainability, and Bolivia’s position in renewable energy.

A government representative verified that although the company has not yet employed digital currencies for payments, arrangements are being made to do so.